KFC applies for liquor licence

KFC customers may soon be able wash their chicken down with a beer after a Sydney store applied for a liquor licence in a move that has been criticised by health advocates.

The fast food chain's new Parramatta store has sought permission to sell alcohol in a bid to keep pace with other so-called "fast casual restaurants" which offer drinks such as beer and cider, the Sydney Morning Herald reports.

The plan is seen as KFC's attempting to expand into the middle market for fast food, which is currently dominated by Nando's, Guzman y Gomez, Mad Mex and Grill'd.

However, the plan has been criticised by Mike Daube, professor of health policy at Curtin University, who called "KFC is the last place where alcohol should be sold".

"This is a company that markets to kids and families," he told the newspaper.

"Kids around the country are watching the KFC Big Bash on TV and at grounds every day. Now they will associate KFC and its marketing not only with junk food but with alcohol."

The plan follows a trial run by two rebranded KFC outlets in Toronto, Canada, last year.

The KFC Fresh-branded outlets sell alcohol and other new KFC offerings including mango rice salad and waffle fries in a reportedly hipster setting featuring exposed brick walls, and an outdoor balcony.

A worker at a neighbouring store said the Parramatta outlet had been fitted out for the launch of a "high-end"pilot store that will bear the name KFC Urban.

The new look store comes after a Roy Morgan poll showed KFC was losing the youth market to rival chicken chain Nando's.